ITEM 7-A

City Council Meeting 9-8-92              Santa Monica, California

                          STAFF REPORT

TO:           Mayor and City Council

FROM:         City Attorney

SUBJECT:      Appeal of business license denial,
              David Bencke, Case No. HE 92-2

A.  DENIAL AND HEARING

     Appellant David Bencke was cited by a City inspector in late
1991  for  conducting  a  mail  order business without a license.
Thereafter, Bencke met with City representatives and argued  that
he  already  had  a business license for a travel agency, and did
not need a separate business license to sell  mail  order  goods.
He was informed that he needed the separate license.

     Bencke then filed a business license application in December
1991  to  sell  "general  merchandise"  by  mail  order.   On his
application, Bencke inserted the following statement:

         "This application  is  being  filed  with  all
         reservation of rights to contest its necessity
         and is not an admission."

     The Licensing  Department  denied  Bencke's  application  as
improper because of this clause.  Bencke appealed the denial.

B.  DECISION OF HEARING EXAMINER

     Bencke's appeal was heard by the City Hearing  Examiner.   A
full  evidentiary  hearing was held, at which Bencke was the sole
witness.  Bencke testified that he inserted the  "reservation  of
rights"  clause  because  his  lawyer  believed  the  license was
unnecessary.

     The Hearing Examiner noted that under Municipal Code Section
6006,  a  separate license is needed for each business.  Thus, he
held, the reservation of rights clause was improper and the  City
was justified in denying the application.

                         RECOMMENDATION

     The appeal should be denied.

PREPARED BY:  Robert M. Myers, City Attorney
              Adam Radinsky, Deputy City Attorney